Negotiable Financial Instruments > This page

SEC on Primebank

Warning to All Investors About Bogus "Prime Bank" and Other Banking-Related Investment Schemes

Lured by the promise of astronomical profits and the chance to be part of an exclusive, international investing program, investors are once again falling prey to bogus "prime bank" scams. These fraudulent schemes involve the purported issuance, trading, or use of so-called "prime" bank, "prime" European bank or "prime" world bank financial instruments, or other "high yield investment programs" ("HYIP"s). The fraud artists who promote these schemes often use the word "prime" - or a synonymous phrase, such as "top fifty world banks" - to cloak their programs with an air of legitimacy. They seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs. But prime bank and other related schemes have no connection whatsoever to the world's leading financial institutions or to banks with the word "prime" in their names. The Securities and Exchange Commission and other federal and state agencies are continuing to warn investors about these scams.

Information obtained from the following web site:

Recommended further reading:
The Informed Investor - "Prime Bank" Scams
View of FBI on "Letter of Credit" and "Prime Bank Note"
Investment Scheme Advisory Alert by the Federal Reserve Bank of New York
"Prime bank" schemes
ICC alert on "Prime Bank Instrument" scams
Uncovering secret market fraud - Price Waterhousecoopers
SEC - So-Called "Limited Edition" United States Treasury Securities
SEC - How Prime Bank Frauds Work

Books on Financial Instruments

Please note that this is not a solicitation or an offer to provide these entities.

Please note that you should consult with your financial and legal advisors before using the information on this web site. We provide the information in good faith but as the applicable laws may differ from country to country, we are not responsible for any actions because of this information.